Safe Investment Strategies
In any aspect of life, we can see a lot of out performers who success in whatever they do, like sports, music and more. And when it comes to wealth, undoubtedly some of the luckiest people got hold of some sort of shortcuts that can get them a lot of wealth in a relatively short time. Only the most brilliant persons would be selfless enough to share the true wisdom and principles that brought them to the success they enjoy. And we should try our best to learn from these people.
No matter golf players, public speakers or pianists, the best always master the basics. We are going to talk about the basic principles in investing properties, stocks, options, new enterprises or antiques. These core principles can make your investment strategies safe ones.
Fundamental investment principles are very important. You may already have many investment experiences, but you still need to review these basics. These are the gold bricks that can largely strengthen your understanding. If you are one of the beginners to the investment world, you should cherish your chance and make yourself strong in the foundations before starting your investment journey. After thoroughly understanding these important elements, you are ready to build your own safe and victorious investment strategy.
Before you learn how to increase your wealth, you must know how to prevent it from decreasing. In Judo, before a student learns how to throw his opponents, he must learn how to protect himself in a fall. Same for investment, you must understand the real meaning of risk and how it relates to the potential return. You must also know how to protect your wealth and leave when the market is not moving as your wish.
Before you enter into any new investment transactions, you should have your safety fallback. You should never commit yourself into a new investment before you know where to escape. The point we think it is the largest amount of loss we are willing to take and we should stop the game and leave the table is called the stop loss point. This is to prevent losing more than you can handle in case of storm.
First thing first, the first thing you must do in a potential investment is to determine the cut loss point. We have experiences to work with a lot of successful investors. Every time when we consider a investment item, ten out of ten times we search for a good cut loss point in the first place. No matter if he is investing NASDAQ or bonds or even properties, they would try to understand the risk before jumping into the possible return. They use a ratio to decide whether the expected return worth taking the related risk.
However, many traders who just began investing do the exact opposite. Typical beginners are often hypnotized by the myth of obtaining large profit and therefore missed the hidden risk. Of course they do not know the ratio between potential return and risk.
Look at the advertisement about investment opportunities in your mail box. They always stress the attractive return but seldom mention what you can do to prevent loss in case of adverse situations. Hence, you must shift your paradigm from "the maximum profit" (return first) to "protect my money at any cost". In other words, to keep on winning in the long term. - 23208
No matter golf players, public speakers or pianists, the best always master the basics. We are going to talk about the basic principles in investing properties, stocks, options, new enterprises or antiques. These core principles can make your investment strategies safe ones.
Fundamental investment principles are very important. You may already have many investment experiences, but you still need to review these basics. These are the gold bricks that can largely strengthen your understanding. If you are one of the beginners to the investment world, you should cherish your chance and make yourself strong in the foundations before starting your investment journey. After thoroughly understanding these important elements, you are ready to build your own safe and victorious investment strategy.
Before you learn how to increase your wealth, you must know how to prevent it from decreasing. In Judo, before a student learns how to throw his opponents, he must learn how to protect himself in a fall. Same for investment, you must understand the real meaning of risk and how it relates to the potential return. You must also know how to protect your wealth and leave when the market is not moving as your wish.
Before you enter into any new investment transactions, you should have your safety fallback. You should never commit yourself into a new investment before you know where to escape. The point we think it is the largest amount of loss we are willing to take and we should stop the game and leave the table is called the stop loss point. This is to prevent losing more than you can handle in case of storm.
First thing first, the first thing you must do in a potential investment is to determine the cut loss point. We have experiences to work with a lot of successful investors. Every time when we consider a investment item, ten out of ten times we search for a good cut loss point in the first place. No matter if he is investing NASDAQ or bonds or even properties, they would try to understand the risk before jumping into the possible return. They use a ratio to decide whether the expected return worth taking the related risk.
However, many traders who just began investing do the exact opposite. Typical beginners are often hypnotized by the myth of obtaining large profit and therefore missed the hidden risk. Of course they do not know the ratio between potential return and risk.
Look at the advertisement about investment opportunities in your mail box. They always stress the attractive return but seldom mention what you can do to prevent loss in case of adverse situations. Hence, you must shift your paradigm from "the maximum profit" (return first) to "protect my money at any cost". In other words, to keep on winning in the long term. - 23208
posted by X - Men @ 11:29 AM
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